In light of Trump’s tariffs, Walmart CEO Douglas McMillon shared the company’s decision to raise prices.
“We will do our best to keep our prices as low as possible. But given the magnitude of the tariffs, even at the reduced levels announced this week, we aren’t able to absorb all the pressure given the reality of narrow retail margins,” he said in a statement.
President Donald Trump was quick to answer back.
In a post on the social media platform Truth Social, he wrote, “Walmart should STOP trying to blame Tariffs as the reason for raising prices throughout the chain. Walmart made BILLIONS OF DOLLARS last year, far more than expected. Between Walmart and China they should, as is said, ‘EAT THE TARIFFS,’ and not charge valued customers ANYTHING.
“I’ll be watching, and so will your customers!!!”
Trump announced a temporary truce with China and even lowered duties on the majority of Chinese imports from a startling 145 percent to 30 percent for a 90-day period.
He warned that without a new deal with China, the US might impose even greater tariffs
John David Rainey, chief financial officer at Walmart, said that the tariffs imposed by Trump are “still too high.”
“We’re wired for everyday low prices, but the magnitude of these increases is more than any retailer can absorb,” Rainey told CNBC.
Last month, the chief executives of Walmart and Target spoke with the president about the devastating potential impacts of tariffs, saying his broad tariff policy might disrupt supply chains and cause product shortages. The conversation was held behind closed doors.
Following the meeting, the companies issued statements.
“We had a productive meeting with President Trump and his team and appreciated the opportunity to share our insights,” Walmart said.
Before Trump’s tariffs go into effect, billionaire Mark Cuban urged people to visit “the local Walmart or big box retailer.”
“It’s not a bad idea to go to the local Walmart or big box retailer and buy lots of consumables now. From toothpaste to soap, anything you can find storage space for, buy before they have to replenish inventory,” he wrote on the social media site Bluesky.
He said that companies will likely increase the prices and blame it on tariffs even if the goods they sell are domestic.
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